Taxes and the Economy

Being in lockdown, with little to do and bored with updating my wiki – I took a shower.  Did you know that showers are one of the best places for thinking, ever?  My campaign system incorporates taxes – and I had a rough idea of how they, and the economy, worked – but by the time I came out of the shower, I had it all sussed out.  Now I need to write it down before I forget.

There are only three different taxes – and they are very straight forward.

Ordinary Taxes

Ordinary Taxes are the main taxes that everyone pays, it goes to the Council or Lord who ‘owns’ the settlement and is used to help expand and maintain the settlement.  It is based on the economic value of the main businesses in the settlement and is currently set at 20% of the economy.  However, it doesn’t come directly from the settlements businesses – but to understand that, you need to understand the three tier economy.

Primary Economy

The Primary Economy consists of the main businesses in town that are run by the PCs or significant NPCs.  If it contributes Economy, Loyalty, Stability, Defence or Magic Items  – it is a main business and part of the primary economy.

Example:  An inn contributes +3Economy and +1Loyalty to a settlement,  and is always part of the primary economy.  It directly employs waiting staff, bar staff, cooks, housekeeping staff, stable staff etc.  It rents rooms, sells food and drink and may have other facilities (such as meeting rooms) as well.  But it hardly pays any taxes – directly.

Secondary Economy

The secondary economy represents those businesses that directly service the Primary Economy.  It is generally run by the middle classes and less important NPCs, and includes craftsmen, professionals and the moderately wealthy.  There are many more people involved in the Secondary Economy that there are in the primary economy.

Example:  the Hotel buys meat from a butcher, veg from the market, crockery from the potter, beer from the brewery, wine from the wine merchant …  The inn needs cutlery, pots, pans, bed linen, laundry services and many other items.  The Commoners need somewhere to live, so the Secondary Economy includes tenements and other rented facilities owned by, and providing an income for, the minor aristocrats and lesser NPCs of the town.  All those members of the Secondary Economy have to pay taxes and fees, and they pass those costs on to the Primary economy, as part of the cost of doing the job.

Tertiary Economy

This consist of the commoners who supply the Secondary Economy.  The brewery needs barley and grains, the butcher needs animals, and the market needs eggs and vegetables.  Somewhere along the line someone has supplied metal to a smith or tinker, material to a seamstress and carried wine to the wine-merchant.  It consists of farm labourers, porters, teamsters, cleaners, spinners, weavers, woodcutters, quarrymen, apprentices, servants – and all sorts of other low skilled commoners. And there are more people involved in the Tertiary Economy than in the Secondary.  These guys all have to pay taxes and fees as well – and these get passed on as well. 

The Effect

The economy is like an iceberg – you only ever see the top 10%,  but there is much more going on underneath.  So while ‘Ordinary Tax’ is based on the economic value of the businesses in a settlement, the money doesn’t actually come from the business itself – it comes from all the people who are involved in the business or servicing it via the Secondary or Tertiary economies.

Nor does it come in the form of income or corporation tax – those are much too difficult to police.  Instead, there are fees for using the market, property taxes, fees for passing through the gates – every one finishes up paying bits of tax, according to their station. However, those costs finish up reflected in the prices that the Inn above charge. 

It is important to remember that these taxes are assessed in BPs – which are an indeterminate mix of cash, goods and services.  So some commoners might pay in labour (sweeping streets, painting bridges, carting refuse).  Some members of the middle classes might pay in a goods or services – a supply of torches, or perhaps pens, ink or maybe even paper or a signwriter might ‘refresh’ some of the town’s signs each year.  There are many options – including coins. 

Simple Tax

This is the tax that is paid to the overlord to help grow and maintain the region / province, country or empire.  Rather than being a set percentage, Henry of Midmarch collects Road Tax – this comes in the shape of road tolls and settlement income raised from goods entering or leaving a settlement.  To keep it simple, Henry collects all the income generated by Roads or Highways within the Campaign System Rules.  He does not claim the income generated by canals.

However, a different game could use a different way of collecting this tax.

Development Tax

A Development Tax, is a fee paid when you are granted permission to build or develop something. 

Settlements of all sorts are required to keep Economy, Loyalty and Stability in balance, if they don’t bad things start to happen in their town.  Investors and business-folks are mainly interested in developments with an Economic benefit for them.  To balance that, the council has to add points of Loyalty and Stability to their town – they can either do this out of their tax money, or they can ask the investor for a contribution towards expenses. 

In Midmarch this has settled at roughly 0.5bp per every point of unbalanced economy –  the town has to find another 0.5bp from its own resources to keep the balance.  This is a discretionary tax – it is normally lower for ‘friends’ and higher for ‘strangers’.   Religious building don’t add to the Economy but do add Loyalty and Stability – so they are often encouraged, tax-free, to help balance economic developments. 

It happens on a provincial level too.  Henry of Midmarch claims the right to charge a fee every time someone wants to settle a hex.  He has a sliding scale of fees for his followers – first hex free, next six hexes taxed at 1bp per hex, 2bp per hex beyond that.  It is higher for strangers.  The right to settle at Tazleford was bought by an elf, who paid for it in a heady mix of gems, jewellery and magic items.  That was three or four times the cost that Henry would have charged one of his favourites.   Indeed, he has been known to give hexes away free to people who have done him a service.

Extra taxes

I have described a full tax system here – however a monarch can charge whatever taxes they think are appropriate.  In England / Britain we have had taxes on the number and size of windows, taxes to fund ship building, or special taxes to support an army.  Not to mention import and export duties on all sorts of items – at one point merchants had to pay a tax to be able to export wool that had been produced in England.

As a DM, you should be prepared to throw in strange taxes if it suits you.  As a player, you should expect them …

Mass Combat

Overview

I have never found a set of mass combat rules in a D&D style game that I liked – but I never really knew why. However, sometime ago I saw a blog that explains it perfectly. The quote below sums it up.

“All of these games perpetuate the flaw that kept Chainmail from catching on in the first place: in order to play them, you have to stop playing D&D.

D&D is not a war game. All the design decisions that make a good war game lead to a bad D&D game, and vice versa.

-Because war games are played competitively, they must be fair. D&D campaigns can only achieve longevity when they are unfair in favor of the players.“

There is more to it, and I ‘sort of’ like the system he comes up with – but that doesn’t work all that well with my overall campaign rules. So I have come up with my own version.

Base Concept

I have read mythology and fantasy books for years, and whenever they describe wars, the action focusses on the heroic individuals and the actual battle take place in the background. The Siege of Troy, for example, focuses on Paris, Achilles, Ajax and other heroes – not on the battle. In Celtic myth Cu Chulain fights off a whole army almost single handled – but the stories deal with the small encounters rather than mass battles. In The Lord of the Rings, Tolkien focuses on the heroes at the Battle of the Black Gate – and I could go on.

It is that style of heroic battle that I want to portray in my mass combat rules. The battle is still there and becomes the backdrop for normally D&D style small group combats – with the PCs as the Armies’ heroes. Importantly the outcome of the PC encounters affects the morale of their army, and adds to their saves and combat rolls.

And that matches my experience as a re-enactor :] For years I have been a member of the Sealed Knot and, more recently, The Wimborne Militia re-enacting battles from 17th century Britain. I am never really aware of the overall state of the battle, apart from in the most general terms, because I am too busy fighting my own fight. The same was true when I was in command of a company or regiment involved in the battle – I was given a specific task, then relied on runners from a General to tell me what the overall position was, or to change my tasking.

I want to create the same sort of effect in my D&D game.

The Campaign Rules

My campaign rules are designed to support a long running game where the players can build up churches, businesses and strongholds – and even develop an independent state, if they want to – and these mass Combat rules need to work with those rules as well. That is particularly important at the moment as my primary campaign, runs on RPoL and can have fifteen or sixteen PCs split into three different adventuring parties.

Under those rules ‘Military Presence’ is defined by Defence Points. Each Defence point is, roughly, about a CR7 encounter (after very basic run-through combat) – and will form the basis of Army size/effectiveness calculations. To do this the size of the unit gets smaller and the toughness of the troops increases. So, perhaps, 10 guardsmen, 7 veterans, 5 light cavalry or 3 heavy cavalry, each make up 1dp of troops. And that makes sense to me, because all of those units have the same cost in the Campaign Rules (1bp) but if you want tougher troops you have to pay them more and buy them better equipment, so it balances out.

To find the total strength of the army I use the additive method found in the DM section of the PF rules. The table below is an extract.

Army CR Calculations

CRWeighting
165
2100
3135
4200
5265
6400
7535
8800
91070
101600
112130
123200
134270
146400
158530
1612800
1717100
1825600
1934100
2051200
2168300
22102400
23137000
24204800
25273000
26409600
27546000
28819200
291092000
301638400

Find the CR value of the unit in the left-hand side, then take the weighting from the right-hand side. Add the weightings together and then cross-reference that total to find the total CR of the Army.

So for example a very small army might consist of 4dp of guards and 3 DP of light cavalry

  • 1dp Guards = 535
  • 1dp Guards = 535
  • 1dp Guards = 535
  • 1dp Guards = 535
  • 1dp Lgt Cav = 535
  • 1dp Lgt Cav = 535
  • 1dp Lgt Cav = 535

Total = 3745

3745 = CR12 army.

For that example, I could just as easily have said 535* 7 = 3475 and got the same result.

This all assumes that the Army has a suitable NPC command structure in place, which should be more or less in place from their other functions in the game world.

However, this system allows us to be a bit more flexible. Perhaps a Cleric, Wizard and Ranger also live in town, and they come along to support the army …

  • Army = 3475
  • L4 Cleric = 135
  • L7 Wizard = 400
  • L6 Ranger = 265

Total = 4075 – or a CR13 army.

Note: Characters with at least one level in a PC or Prestige Class.

Example

Midmarch has an army worth 44 defence points, assuming that every unit musters as requested – that gives an Army strength of 23,540 – or a CR 17 army. However, there are a number of NPCs or inactive PCs who come along in support of the army.

  • Henry (Aristo/Scion) CR6 – 400
  • Rikka (Magus) CR5 – 265
  • El (Fighter) CR3 – 135
  • Abbess Beatrix (Cleric) CR3 – 135

Bringing the total strength up to 24,475 – which is still a CR17 army, but it doesn’t need much (perhaps the Roths) to push it up to CR 18.

It makes combining armies straight forward as well. For example House Khavortorov have 15dp (8025) of normal troops and supporters worth another 1465 – giving an army strength of 9,490 or a CR15 army.

Should Midmarch and Khavortorov join up to fight together – their total is 24,475+9,490 = 33,965. Or a CR 18 army. Again it doesn’t need much (just a L4 PC) to tip it over to a CR 19 army.

Making it work.

The battle ebbs and flows around the battlefield, often in sight of the heroic PCs battle. At the end of each combat round one of the PCs rolls for their army, DM rolls for the enemy. Opposed D20 roll – modified by the Army CR and mods awarded from the PC battle. Keep a total of Victory Points.

Army wins by 15 or moreDominant win+3 Victory points
Army wins by 10 or moreWin+2 Victory Points
Army wins by 5 or moreWinning Draw+1 Victory Point
 DrawNo Change
Army loses by 5 or moreLosing DrawNo Change
Army loses by 10 or moreLose-1 Victory point
Army loses by 15 or moreHeavy loss-2 Victory points
PCs get the better of the round +1 morale modifier to Army combat roll
PCs clearly winning +2 morale modifier to Army combat roll
PCs win Heroic Combat +5 morale modifier to Army combat roll, and
+5 Victory points.

The battle ends at the same time as the PCs Heroic Combat.

Victory Conditions

If an army ever reaches -25 Victory Points, it routs and runs away. It might be reformed later, but it suffers a -4cr depletion penalty until it can get back to its barracks and recruit new soldiers. Getting a routed army to reform is an RP challenge for the PCs. A routing army may be pursued by Heroes from the other side, but the victorious army does not chase them.

If no-one routs – then both sides retreat to their pre-battle formation when the PC heroic combat finishes. Any army who finishes the day with 1+ Victory Points – suffers a -1cr depletion penalty until it can get back to its barracks and recruit new soldiers. Any army who finishes the day with 0- Victory Points – suffers a -2cr depletion penalty until it can get back to its barracks and recruit new soldiers.

Whether the armies reform and fight again next day is down to the commanders on both sides. Either commander can choose to retire and concede the ground – if both choose to stand, the battle starts again the next day (with the cr penalties applied)

Why do it that way? Even a victorious army loses soldiers unless they are re-enforced – and that is hard to do with limited communications and really slow transport. But just as importantly, it means even Victorious leaders have to think about their army strength – especially if they think they need to take on a different army later.

Sieges

Sieges have always been more difficult that open battles, and even taking buildings with light fortification or defence is more difficult than taking, or burning, civilian properties. This is because there are more combat trained people about, that can fill in when required. Under the Campaign rules there are auxiliaries and militia – and then there are all those guys who are too old to go off on active duty. However, they can fire crossbows for the walls, chuck rocks over the battlements, pour hot stuff through murder holes or poke spears at anyone who comes close. So …

  • If the troops are at home (ie not out as part of an army) Defence Point Value for every fortified building, villages with palisades, or towns/cities with walls is doubled.
  • If the troops are away, with the army, the buildings are defended by those people left behind – so defence points still count (but at normal value) if the building or settlement is besieged.

The problem arises when you have a city like Tusk. Three districts are inside the walls – and benefit from defence – but another three are outside the walls and there is nothing to stop a marauding army destroying those districts – when the army is away from home.